Company Formation in Hungary for US Entrepreneurs
Company formation in Hungary offers access to the EU market, low taxes, and residency options. Learn about the steps, costs, and compliance rules.
Missouri is home to over 579,040 small businesses, making up 99.5% of all businesses in the state1. It stands out for its low startup costs, minimal ongoing requirements, and straightforward formation process, making it a smart choice for new and growing businesses.
With such a strong entrepreneurial presence, it’s no surprise that many business owners choose to form a Limited Liability Company (LLC) for its flexibility, liability protection, and tax advantages. This guide walks you through exactly how to form an LLC in Missouri and what to expect along the way.
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Your LLC's name must be distinguishable from existing entities registered with the Missouri Secretary of State and include "Limited Liability Company," "LLC," or "L.L.C." Conduct a name availability search through the Missouri Business Entity Search2 to ensure your desired name is available. Optionally, you can reserve the name for 60 days by filing a Name Reservation form and paying a $25 fee.
A registered agent is responsible for receiving legal documents on behalf of your LLC. The agent must have a physical address in Missouri and be available during business hours. You can act as your own agent, appoint a trusted individual, or hire a professional registered agent service.
To officially create your LLC, file the Articles of Organization3 with the Missouri Secretary of State. You can file online for a $50 fee, which offers immediate processing, or by mail for a $105 fee, with processing times of 3-4 weeks. The form requires information such as your LLC's name, principal office address, registered agent's name and address, duration of the LLC, and management structure.
Missouri doesn’t require LLCs to have an operating agreement, but you should still create one. It defines who owns the business, how decisions are made, how profits are shared, and what happens if a member leaves. A clear operating agreement helps prevent conflicts and keeps your business running smoothly.
An EIN is required for tax purposes, opening a business bank account, and hiring employees. You can apply for an EIN at no cost through the IRS website45.
Once your LLC is formed, you’ll need to stay compliant with a few key requirements.
Missouri offers several advantages for LLC formation:
Missouri’s low filing fees and lack of annual reporting costs make it one of the more affordable states to start and maintain an LLC.
Expense | Cost |
---|---|
Articles of Organization (Online) | $50 |
Articles of Organization (Mail) | $105 |
Name Reservation (Optional) | $25 |
Registered Agent Service (Optional) | $100–$300/year |
Operating Agreement Drafting (Optional) | Varies |
Annual Report | $0 |
Yes, nonresidents can form an LLC in Missouri. However, you must appoint a registered agent with a physical address in Missouri to receive legal documents on behalf of your LLC. Additionally, if your LLC conducts business in other states, you may need to register as a foreign LLC in those jurisdictions.
Absolutely. Non-U.S. residents can establish an LLC in Missouri. The process mirrors that for residents, with the added step of obtaining an EIN from the IRS, which can be done without a Social Security Number by submitting Form SS-4 via mail or fax. It's advisable to consult with legal and tax professionals to ensure compliance with U.S. laws and regulations.
If you're considering forming an LLC, it's worth seeing how Missouri stacks up against other states. Key differences in filing fees, taxes, reporting requirements, and privacy laws can affect your long-term costs and obligations.
Feature | Missouri | Kansas | Illinois | Arkansas |
---|---|---|---|---|
Initial Filing Fee | $50 (online) | $165 | $150 | $45 |
Annual Report Requirement | No | Yes | Yes | Yes |
Annual Report Fee | $0 | $55 | $75 | $150 |
State Income Tax Rate | 4% | 5.7% | 4.95% | 5.9% |
Franchise Tax | None | None | Yes | None |
Business License Requirement | Varies | Varies | Yes | Varies |
Privacy Protections | Moderate | Moderate | Low | Moderate |
Once you have established your business with an LLC, you’ll need a business account to manage your US finances. A Wise Business account is easy to open online and comes with no monthly fees. You can convert funds from your home currency to USD with low, transparent fees.
Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to countries.
Some key features of Wise Business include: |
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Open a Wise Business account online
With one of the lowest filing fees in the country and no annual report requirement, Missouri stands out as a cost-effective option for business owners. The process is straightforward, and ongoing compliance is minimal compared to other states, making it easier to stay focused on running your business.
Missouri’s central location and strong regional economy make it a strategic choice for businesses that operate across state lines or serve a Midwest customer base. The state supports small businesses through various local incentives, and its straightforward regulatory environment helps reduce the learning curve for new entrepreneurs.
While Missouri requires LLCs to have a public address, you can protect your home address by using a registered agent service. This keeps your personal address off public records while staying compliant with Missouri’s rules. Additionally, starting in 2024, the Corporate Transparency Act requires filing a Beneficial Ownership Information (BOI) report, which is not publicly accessible but is available to law enforcement and certain government agencies.
Missouri is favored for its low filing fees, absence of annual report requirements, and favorable tax treatment. These factors make it an attractive option for entrepreneurs seeking to minimize administrative burdens and costs.
No, a Missouri LLC is not entirely tax-free. While the LLC itself may not pay income tax if it's a pass-through entity, members are responsible for paying taxes on their share of the profits. Additionally, Missouri imposes a 4% corporate income tax on LLCs that elect to be taxed as corporations.
The LLC members are typically subject to self-employment taxes on their share of the profits, which can increase the overall tax burden compared to some corporate structures. LLCs cannot issue stock, which may limit their ability to raise capital from outside investors, especially when compared to corporations that can attract funding through equity offerings.
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*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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